Residents in the Damon Run area will pay a higher sewer rate, starting next year. The Valparaiso City Council on Monday approved a three-phase increase, with increases in January 2025, 2026 and 2027.
A big reason for the rate hike is the increase in treatment costs from the city of Portage, according to Valparaiso City Services Executive Director Steve Poulos. "We . . . control three out of the four legs of this operation: operation and maintenance of the sewer assets, capital improvement, debt service," Poulos explained during Monday's council meeting. "However, wastewater treatment for the Damon Run is serviced by the city of Portage. Therefore, city utilities pays the city of Portage directly for these wastewater services."
The monthly bill will go from about $92 today to about $115 when the final phase takes effect in January 2027, for customers using 4,000 gallons a month.
Still, Eric Walsh with municipal advisor Baker Tilly notes that the 25-percent increase to Damon Run residents is less than the 59-percent increase from the city of Portage. "So by Valparaiso City Utilities' operational efficiencies in the other three buckets of cost — debt, operations and capital infrastructure investment — we're able to offset or keep their overall rate increase smaller than what Portage is passing along," Walsh said.
No one spoke during Monday's public hearing on the increase. Damon Run customers were not affected by the rate hike approved earlier this year for customers inside Valparaiso's city limits.
